Construction comment: Industry Skills Plan

Blake Morgan Construction Partner Joanna Rees comments on the Industry Skills Plan in an article first published in Construction Law on 12 March.

New Government mandates on direct employment could be introduced in construction within the next four years under a skills strategy for the sector published this week by the Construction Leadership Council. Lawyers say these mandates could bring many benefits, but would increase costs for contractors which should be reflected in the evaluation of tenders.

Joanna said: “The first important point to make is that direct employment is already mandated on major projects, and Government influencing contractors’ employment strategies through procurement would not be a completely new development. For instance, in Wales, Transport for Wales obliges contractors to address certain skills gaps in their supply chain and to demonstrate a plan for upskilling workers.

“Encouraging contractual obligations as part of a Government tender process boosts the number of new full time jobs, apprenticeships and grad schemes, with a very positive effect on social mobility in local areas around project sites. This should be praised and welcomed.

“However, it’s also worth noting that the reason these obligations work on major schemes is that a long term commitment is guaranteed; on smaller projects the risk profile will be different.”

If you are a subscriber to Construction Law, you can read the Industry Skills Plan article in full here.